Chicago Short-Term Rental Regulations
| Permit | ✓ Required — Shared Housing Registration ($250) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — 31 days or fewer per stay |
| Tax Rate | 10.5% |
| Max Penalty | $5,000 per day |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Shared Housing Registration
| Fee | Amount |
|---|---|
| Initial cost | $250 |
| Renewal | $250 / 1 year |
This permit type does not require primary residence.
Application Process
Online via Shared Housing Registration Portal; requires government-issued ID; primary residency documents required if the unit is your primary residence; processing time not specified
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Chicago Hotel Accommodation Tax | 4.5% | City of Chicago |
| Shared Housing Surcharge | 6% | City of Chicago |
Combined rate: 10.5% of gross rental income.
Collection: Platform auto-remits when booked through a licensed intermediary; host must self-remit when using own platform
Filing: Monthly (default), quarterly, or annually depending on IDOR notification; filed via Form RHM-1
Rental Limits
Chicago does not impose an annual cap on the number of nights you can rent. Each individual stay must be 31 days or fewer per stay.
Zoning & Restrictions
Check with local government
Insurance & Safety
Insurance
Chicago does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.
Penalties for Non-Compliance
Standard: $1,500–$3,000 per day; Egregious: $2,500–$5,000 per day
Platform Requirements
Platforms must obtain a Short-Term Residential Rental Intermediary license, verify host registration numbers before listing, and collect and remit hotel accommodation tax and surcharge on each transaction
Compliance Checklist
Follow these steps to legally operate a short-term rental in Chicago:
- Apply for Shared Housing Registration. Submit application + $250 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 10.5% on all bookings.
- Renew annually. $250 renewal fee.
Frequently Asked Questions
- Do you need a permit to run an Airbnb in Chicago?
- Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Chicago requires a Shared Housing Registration.
- How much does a short-term rental permit cost in Chicago?
- A Shared Housing Registration in Chicago costs $250 per year.
- Does Chicago require a short-term rental to be your primary residence?
- No. Chicago allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
- How many days a year can you short-term rent in Chicago?
- Chicago does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
- What taxes do you pay on a short-term rental in Chicago?
- Short-term rental stays in Chicago are subject to a combined 10.5% in lodging taxes. This combines 4.5% Chicago Hotel Accommodation Tax + 6% Shared Housing Surcharge. The host is responsible for collecting and remitting them.
- What happens if you run a short-term rental without a permit in Chicago?
- Operating without a permit can cost up to $5,000 per day.
Tools for Short-Term Rental Hosts
AdServices that help hosts handle the legal, management, pricing, and cleaning side of a short-term rental.